We bought 2 of our daughters kindle fire last Christmas, and our 3rd daughter a nook color.
They love the kindle fire. No real issues with them. They are able to download music on both, watch movies, read books and magazines, and play thousands if games thru apps.
The color and resolution are fine.
I got the new iPad. They do a lot of the same things the kindle and nook do. The sound, color and resolution do not compare to the kindle or nook.
However, having said this, if my kids ( who already have the kindles and nook) asked for an iPad this year, I would not buy it for them. They are too much alike, just one is more expensive and a bit better. But, overall, they do pretty much the same thing.